SMLS (CS07) HUMAN RESOURCES

The right personnel for the right reasons

Human Resources

The Seven Steps

The correct employees, properly motivated, properly trained, are the most powerful asset that a business can have. The effective use of this asset really determines how well the non-human assets can be used. The best plant will not be productive unless the people in it are. This is especially critical for small businesses. Small businesses simply cannot afford to have the wrong people, meaning anyone other than the right people, working for them. As a small business or department within a larger organization, you can’t afford to absorb the inefficiency of one or two wrong employees. The cost here is not only their own non-productivity, but also the more insidious cost of their counter-productivity. These “wrong” workers negatively affect the efficiency of your other employees and your own productivity as owner or manager.

There is a simple cure for most personnel problems – make sure that you have the right employees properly trained and motivated. Simple as this cure is to state, it is not so simple in application.

Although the process is a straightforward one, the difficulty for most is in developing a willingness to allocate the time to cure the problem. The lack of willingness stems from a low regard that many smaller businesses, along with their larger counterparts, hold for personnel functions that are often seen as purely clerical activities. This couldn’t be further from the truth and the impact can be particularly severe for a small firm or department. It is the productivity of people that is the primary determinant of profitability in most firms, small or large.

The seven-step process described in the learning workbook shows how you can avoid most of the commonly observed people problems. People are a critical asset, a critical resource within your business. Make sure that this resource is used to its maximum advantage. The process that is described is one that you can implement in your own business to achieve this objective.

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